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EPF Guideline
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INTRODUCTION

Contributions

Purpose of account

Account I

70%

for retirement

Account II

30%

for housing and pre-retirement


Entitlement

With effect from 1 January 2007, EPF BOARD introduced a new system whereby the contributions standing to the credit of and received in respect of each member shall be apportioned into two (2) accounts as follows:

Your entitlement would be 30% of balance available in Purchaser’s EPF account II or the difference between the purchase price and loan amount (whichever is lower).

30% of the amount standing to the credit of the member is kept in Account II which may be withdrawn for housing purposes. It may also be withdrawn, upon the member reaching the age of 50, for retirement plans to be made.

Withdrawal to Purchase a House

This withdrawal allows you to withdraw your savings in Account II to partially finance the purchase of a house either via: 

  • Individual purchase; or
  • Joint purchase with spouse, family members or other individuals.


Withdrawal Eligibility

You are eligible to apply if you are:

  • A Malaysian citizen; or
  • A Permanent Resident; or
  • A Malaysian citizen who have withdrawn your savings under Leaving The Country Withdrawal before 1  August 1995 but subsequently returned and re-contribute to EPF; or
  • A Non-Malaysian citizen (Expatriate) who became a member of the EPF before 1 August 1998.

You need to have savings in your Account II and you must also have not reached 55 years of age on the date the application is received by the EPF.

AMOUNT ELIGIBLE TO WITHDRAW

You can withdraw your savings based on the following, whichever is lower :

  1. Individual Purchase The difference between the price of the house and the housing loan with an additional 10% of the price of the house.

    OR

    All balance available in Account II
  2. Joint Withdrawal with Spouse, Family Members or Other Individuals – The difference between the price of the house and the housing loan with an additional 10% of the price of the house.

OR

All balance available in Account II of all applicants subject to the maximum eligible amount as stated above.

If you obtained a full housing loan (100%), you are eligible to withdraw as much as 10% of the price of the house OR all balance available in Account II,  whichever is lower.

If you purchased a house by cash, you are eligible to withdraw as much as the price of the house with an additional 10% of the price of the house OR all balance available in Account II, whichever is lower. You can choose to determine the amount you wish to withdraw from your savings in Account II, subject to the maximum amount you are entitled to withdrawal by completing “Surat Akujanji Pilihan Amaun Pengeluaran”.

FREQUENCY OF WITHDRAWAL

This withdrawal is only allowed for your first house. However, if you have made a withdrawal previously to buy your first house and subsequently have sold the house, you may withdraw to buy a second home. Proof of sale of the first house must be produced.

For further enquiries or any extended information on EPF withdrawal, you are advised to contact the nearest EPF office as below:

Customer Service Department : +603-8732 6000

E-mail: enquiry@epf.gov.my

Website: http://www.kwsp.gov.my

*EPF reserves the rights to alter, change or amend any terms and conditions deemed necessary, and the above is purely an informative guide intended for your reference only.

**Source: www.kwsp.gov.my